As small as the new players are, conventional supermarket operators have taken notice and are rethinking their own strategies. Some have sought their own financing to update stores and expand into new markets. One such company — Heinen’s Fine Foods — is investing more than $10 million to turn an old Staples office supply store into a 38,000-square-foot supermarket in the Chicago suburb of Barrington, Ill. What’s telling is that the new location is an eight-hour ...

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